After his initial experiments, Lo conducted
the same test with students in the MIT Sloan classroom, and
one of the students, curiously, tested the same as the bond
traders had. Only afterward did Lo and the class discover
that the student had been a bond trader for five years before
coming to MIT Sloan. Serendipitously, this classroom experiment
confirmed Lo's theories, and he was able to file a patent.
Lo also collaborates with Tomaso Poggio in MIT's Brain and
Cognitive Sciences group on artificial neural networks for
options pricing. They plan to monitor the brain waves of traders
as they transact deals while lying inside a magnetic resonance
imaging machine.

Tanya Styblo Beder, chairman of the International
Association of Financial Engineers, considers Lo a trailblazer
in a largely unexplored field. “Dr. Lo's work
in the foundations of technical analysis and his empirical
studies of the stock market are tremendously valuable to investors
and investment managers.”